Mining Engineer Mike Vint joins Premium Exploration
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Al, any chance we can talk these guys off the cliff–prevent them from diluting existing shareholders by 50% with a massive equity raise at the bottom of the market? why not a simple PP for 10M shares at 15 cents just to get through a few more months..even raising money at 25-30 cents would not be disastrous if we can get there in a few months
Morning skii,
I am going to forward your comment on to the company and I will then get back to you all.
Best,
Big Al
Yes Al, Please do convey these issues to them in the strongest terms. The equity raise and dilution at these prices is just atrocious and very irresponsible towards investors.
It will leave alot of resentment on the part of long time shareholders.
I agree that this financing was a bad idea. Too many shares at too low a price. Why someone would think it’s a good idea to finance right at the bottom of tax-loss season is beyond me. That being said, it won’t be a 50% dilution, like skii said. It will be for about 22 million shares (at least that’s what the IR guy said).
HI Jesse,
Folks have to keep in mind that the financing is simply taking the place of the warrant exercise which, obviously, did not and will not happen.
Best,
Big Al
I don’t own Premium. I think the concerns about dilution are always valid. But I will also say this…Dell and others like Mike are not afraid on coming on the show and talking about their decisions. I appreciate their forthright communication.
I bought the first 42% of my present stake in PMMEF last year on 9/2 and 9/3, bought the second 42% on 10/29/11 and the final 16% on 11/23/11. With today’s close at 0.16, my investment is down about 65%. With the cash left in my IRA, I could raise the number of my shares by 38% and lower my average cost per share from 0.44 to 0.36. Even though I’m 65, I consider myself a patient investor rather than someone looking for a quick turn-over. Still, I struggle about whether to increase my holdings given the concerns others have expressed. Does anyone in our “Korelin Kommunity” have any thoughts about the wisdom of buying more? Thanks!
Never put all your eggs in one basket… That being said, I am very long on premium and have also added significantly on the way down… It sounds like you have a decent position already, and, as I said before, diversification is never a bad thing.
Thanks, Cussy. I should have made it clear that my investment in PMMEF represents only a tiny fraction of my total holdings, both within IRAs and in taxable accounts. That said, you still hate to see any holding go down, and you still have to judge whether the underlying fundamentals have changed before committing more funds You mention being “very long on premium” and also having “added significantly on the way down.” Would you mind telling me if your overall investment is “under water” to the same extent as mine is (i.e. around 65%) and whether Mr. Vint’s recent appointment would cause you to consider buying more? Thanks for responding.
Hi Big E,
Don’t put all your eggs in one basket.
You obviously bought PEM because you liked the company. Hard to say what is going to happen in the future.
Remember, I personally believe strongly in diversification.
Big Al
Hi, Al,
I should have made it clear at the outset that my investment in PMMEF represents only a tiny fraction of my total holdings.
That said, you still hate to see any holding go down by two-thirds. When that happens, I think an investor has to revisit the underlying fundamentals that caused him to buy in the first place. What do you think?
Just my .02…look at what else you own. There’s a lot of great values out there today, with several companies still trading lower than book value, some getting ready to produce but still priced as explorers, etc. When you ‘know’ a company really well, sometimes a disproportionate position works nicely (I’ve done this twice). If that’s not your case, look at what else is out there too.
Thanks, John. Good advice. You’ve described the “sweet spot” very well: finding companies with proven reserves and close to production but still priced by the market as explorers at an earlier stage. The announcement from Exeter earlier this week may be such an example. As always, the Devil is in the details as they say, and I don’t have the credentials of a mercenary geologist!
Insider selling is terrible!
Dundee Corporation Indirect Ownership Common Shares 10 – Disposition in the public market -531,000 $0.125
Dec 21/11 Dec 20/11 Dundee Corporation Indirect Ownership Common Shares 10 – Disposition in the public market -680,000 $0.126
Dec 21/11 Dec 19/11 Dundee Corporation Indirect Ownership Common Shares 10 – Disposition in the public market -347,000 $0.130
Dec 16/11 Dec 15/11 Dundee Corporation Indirect Ownership Common Shares 10 – Disposition in the public market -442,000 $0.132
Dec 15/11 Dec 13/11 Dundee Corporation Indirect Ownership Common Shares 10 – Disposition in the public market -387,000 $0.155
Dec 15/11 Dec 13/11 Dundee Corporation Indirect Ownership Common Shares 10 – Disposition in the public market -291,000 $0.146
Dec 12/11 Dec 9/11 Dundee Corporation Indirect Ownership Common Shares 10 – Disposition in the public market -278,000 $0.162
Dec 9/11 Dec 8/11 Dundee Corporation Indirect Ownership Common Shares 10 – Disposition in the public market -449,000 $0.167
Dundee is usually pretty well informed and generally very patient in holding shares for a long time.
Thanks very much for the info, cfs2000! Is there a website where one can find out about these sales? Is there also a website that gives info about Dundee and what their significant positions are?
Dundee trades on the TSX as DPM
From memory I think their website is http://www.dundeeprecious.com
They usually give a breakdown of their current holdings at their AGM which is usually broadcast and I listen to it.
http://www.TMX.com gives insider trading,as does quotemedia.
cfs20000, thanks so much for taking the trouble to respond to me. I’ll definitely be following up on your leads! By the way, please tell me what “AGM” stands for.
Thanks again!
Annuall General Meeting
Morning CFS,
I will talk with Del about this today.
Big Al
rather than keep going to the markets for more money why dont we put buffalo gulch into production with a partner and generate capitol to further drilling? its insane at this point to keep diluting the company into oblivion when we have commercial land and patented claims with nearby power.
Very interesting point, Shep!
I will discuss this with Del today.
Big Al
We continue to like Premium and know the story, property and management well. Yes they got hammered in the last quarter. This quarter we forecast a reverse. We know of some potentials on the property that are under the radar. Watch for good news and better shares prices. -Traderrog
I have another Daily Editorial with Del Steiner in which he answers some very important questions.
Will be up shortly.
Big Al
Al, Please tell Del to find me a glory hole!!!
ALWAYS GREAT INFO…THANKS AGAIN….
LEARN SOMETHING NEW EVERY DAY….